Published Friday, June 5, 1998, in the San Jose Mercury News JOHN JORDAN Prop. 226 defeat is impressive, but leadership must change with the times Labor should heed lessons of victory BY JOHN JORDAN LABOR won an important victory Tuesday when it decisively defeated Proposition 226, the so-called Paycheck Protection Act. Unions and their allies beat back a cynical and well-coordinated attempt to deny them a strong voice in the political process. Labor did what it had to do, combining an aggressive and well-funded television ad campaign with an unprecedented effort to engage and mobilize members. But in politics, victory can be almost as dangerous as defeat. In the midst of the well-deserved excitement, hard questions and sober analysis can get shoved to the back burner. The following are some lessons labor should consider as it moves toward November: The best defense is a good offense. Labor's enemies have long understood this maxim. In a sense, even in defeat they enjoyed victory, as Proposition 226 drained energy and resources -- some $20 million -- that unions could have thrown into a proactive campaign. Putting a proposition on the ballot costs about $200,000. Defeating one costs almost 10 times as much. Labor should put at least one forward-looking proposition on the state ballot during every election cycle. Labor is and will remain a primarily political power. The ``No on 226'' effort was one of many union political victories of recent years. An increased minimum wage, the Family and Medical Leave Act and ``living wage'' laws in Oakland and other cities are just some of labor's positive political wins. At the same time, labor continues to lose power at the bargaining table. Its strikes and other efforts have been largely defensive acts to merely maintain the status quo. Even the successful strike waged against United Parcel Service by the Teamsters Union was largely defensive. And the Teamsters have yet to translate it into other bargaining or membership recruitment wins. Nowhere is labor's failure to successfully operate outside the political arena more obvious than in the AFL-CIO's high-profile and expensive efforts to recruit new members. Many Bay Area residents are familiar with the United Farm Workers' campaign to organize strawberry workers in Watsonville. After two years and millions of AFL-CIO dollars, the UFW has about 50 new members to show for its efforts. The AFL-CIO has had more success elsewhere, recruiting about 3,000 new construction workers in Las Vegas. But the heart sinks when one is reminded that the U.S. economy adds about 250,000 new jobs a month. Even in the midst of a boom, unions' share of the workforce continues its inexorable decline. Ironically, many of the AFL-CIO's membership recruiters disparage electoral politics, convinced it's a waste of time. But the results speak for themselves. Tens of millions of workers saw real and immediate benefits when, under intense union pressure, Congress raised the minimum wage. Contrast that with labor's membership recruitment program. Unions win only half the organizing campaigns they run. And only half those victories result in signed collective bargaining agreements. In business terms, labor gets its highest return on investment in the political arena. I predict that within a decade, the AFL-CIO and its member unions will re-orient themselves almost completely toward electoral politics, concentrating on mobilizing the members they have rather than spending millions to add a few thousand new ones. Members make the difference. During the decade I worked for unions in Washington, D.C., I heard one thing over and over again: ``What labor needs is new leadership.'' This was and is undoubtedly true. Unions are still dominated by men whose understanding of the workplace and the larger society was forged in the 1950s. I know from firsthand experience that few of these ``leaders'' has the slightest idea about how to send an e-mail, let alone how cutting-edge companies like those in Silicon Valley manage their operations and employees. An injection of genuinely new blood is long overdue. But leaders are nothing without followers. Union members followed union officials when they got out from behind their desks and communicated directly with members. I think even some officials were surprised at how energetic and effective members treated intelligently and respectfully can be. This shouldn't blind union officials to how much further they have to go to truly reconnect with members. It was ironic to hear union representatives speak out against Proposition 226 by saying it was redundant, that it would ``simply protect a right union members already have.'' Union officials implied that members' right to withhold dues money that goes to politics -- Beck rights -- came about as a result of internal union processes. It didn't, and union officials know it. The U.S. Supreme Court imposed this right on unions. To this day, most union officials disparage this right and those who exercise it. It is important to publicly acknowledge that just about every advance in union democracy -- from Beck to direct elections at the Teamsters, Laborers and other unions -- is the result of federal intervention in internal union affairs. It is labor's rigid governing style that gives its opponents openings to tie up unions with things like Proposition 226. If unions really are democratic, let them prove it. Let them adopt long overdue reforms before the government or their enemies force them to. Labor should be proud of what it accomplished on Tuesday. I say to my union friends: By all means, celebrate your victory. But please use this win as a chance to learn the lessons that will let you spend $20 million moving the ball forward, instead of just keeping it at your own 20-yard line. John Jordan is a labor consultant and public relations executive from Campbell. He can be contacted at [EMAIL PROTECTED] . ================================== Published Thursday, June 4, 1998, in the San Jose Mercury News PROPOSITION 226 BY HALLYE JORDAN AND JIM PUZZANGHERA Mercury News Staff Writers SACRAMENTO -- On the door of the California Teachers Association building, handmade signs thank voters for the come-from-behind defeat of Proposition 226 on Tuesday. But the CTA, which poured $3.7 million into the campaign to trounce the once-popular union-dues proposition, should also thank Gov. Pete Wilson. The outgoing Republican governor's tireless campaign on behalf of the nationally watched measure probably contributed to its downfall -- and may have slowed momentum for similar measures pending in at least 26 other states. ``There is no doubt Pete Wilson's high profile as chairman of the 226 committee was like waving a red flag in front of a bull,'' said Dick Rosengarten, publisher of the California Political Week, a non-partisan political newsletter. ``Who cares about (226 financial backers ) J. Patrick Rooney and Grover Norquist? Everyone knows who Gov. Pete Wilson is, and that's all that it takes.'' The vote may have more impact nationally than in California. On Capitol Hill on Wednesday, lawmakers were gauging the effects the California ballot battle would have on a similar union dues provision that's been proposed as part of the federal campaign finance reform. Bills specifically addressing the issue have been defeated in the Senate and the House. But Senate Majority Leader Trent Lott and House Speaker Newt Gingrich -- both Republicans -- are strong supporters of the issue. Rep. Asa Hutchinson, R-Ark., the sponsor of a campaign reform bill being pushed by congressional freshmen, predicted Wednesday that the defeat of Proposition 226 will doom efforts to add a similar provision to their bill. The proposition received national attention, and financial backing, from conservative groups that are pushing similar measures in other states and in Congress in an attempt to curb labor's political clout. Norquist, the Washington, D.C., lobbyist who pumped $441,000 into the California initiative, said Tuesday's election results will not slow his conservative Americans for Tax Reform group from pushing for similar laws across the country. Norquist said that although it was defeated, putting Proposition 226 on the ballot in bellwether California served a bigger purpose. It sparked a national debate on whether unions should receive permission from their members before funneling a portion of their dues to political causes and candidates. Backer says issue moves forward ``People in California were getting these phone calls from people saying (if Proposition 226 passes), police are going to get killed, it's going to hurt the United Way. That kind of distraction was basically dishonest political rhetoric,'' Norquist said. ``But the rest of the nation had an honest discussion. So, win, lose or draw in California, the issue has moved forward rather well nationally.'' Proposition 226 would have cut labor's considerable political clout by requiring union leaders to obtain permission from members before putting their union dues into political campaigns. The measure had one of the highest approval ratings when first introduced, but its popularity plummeted in the wake of at least $20 million that national and state labor unions poured into TV ads and political mailers. A Field Poll in November showed 72 percent of voters supported it and 22 percent opposed it; by last week, 45 percent were in support and 47 percent opposed. ``The irony here is that that the poultry worker in South Carolina and the millworker in Maine and the teacher in Wisconsin all had money taken from their paycheck and spent on a campaign in California that they knew nothing about,'' said Sean Walsh, Wilson's press secretary. Labor leaders said Wednesday the stunning victory has unified labor unions across the nation and will motivate workers to keep using the political voice they protected by turning out en masse in November and future elections -- especially when labor rights are attacked. ``We emerge from this campaign stronger than ever,'' said Art Pulaski, executive secretary-treasurer of the California Labor Federation, AFL-CIO. ``Starting today, California unions can turn our attention back to the real work of the labor movement: decent wages and daily overtime, better health care and secure pensions, better education for all our kids.'' One business leader who asked not to be named, however, said he doubts the reinvigorated labor movement will last long. ``I do think people turned out to vote against 226, and I don't know anybody who turned out to vote just for 226,'' the business representative said. ``But I don't think that necessarily translates to bigger voting in November or any other election.'' Another try promised Mark Bucher, one of three conservative Orange County businessmen who wrote the initiative after tussling with the California Teachers Association over school vouchers, said he will try to requalify the initiative. ``I think this is a victory, even in defeat, because (opponents) threw everything they had at us and we only lost by a couple of points,'' Bucher said. But Judith Barish, spokeswoman for the California Labor Federation, AFL-CIO, said any future propositions will be even easier to defeat the second time around. Did the defeat of Proposition 226 hurt the presidential chances of Wilson, who has clashed with labor over everything from salary increases and minimum-wage increases to the eight-hour workday? ``You better believe it,'' Rosengarten said. ``He was counting on this to really help give him a boost.'' But Walsh, Wilson's press secretary, said the defeat won't hurt Wilson politically. ``Here is a man that stood against the odds, against a $30 million onslaught with very little outside political support, and, quite frankly, we ran a campaign that came up a few points short,'' Walsh said. ``That's fairly remarkable for the massive amount of money that was spent against it.''